OSMONICS, INC. AND SUBSIDIARIES VALUATION AND QUALIFYING ACCOUNTS (In thousands) Years Ended December 31, 1997, 1996 and 1995 Column A Column B Column C Column D Column E Additions Balance Charged Charged Balance At Beg. to Cost to at of and Other Deduct- End of Period xpensed Accts ions Period Description Year Ended Dec. 31, 1997: Current Operations: Allowance for Doubtful Accounts $ 907 $ 139 $ 158 $ 888 Warranty and Start-up Reserve $1,802 $2,343 $2,245 $1,900 Discont. Operations: Warranty Reserve $1,957 $1,957(D) $0 Year Ended December 31, 1996: Current Operations: Allowance for Doubtful Accounts $1,177 $ 59 $ 329(A) $ 907 Warranty and Start-up Reserve $1,868 $2,414 $2,480(B) $1,802 Discont. Operations: Warranty Reserve $1,957 $1,957 Year Ended December 31, 1995: Current Operations: Allowance for Doubtful Accounts $1,329 $ 80 $109(C) $ 341(A) $1,177 Warranty and Start-up Reserve $1,981 $1,406 $1,519 $1,868 Discont. Operations: Allowance for Doubtful Accounts $ 46 $ 46(A) $ 0 Warranty Reserve $1,961 $ 4(B) $1,957 Reserve for Discont. Operations $ 127 $ 127 $ 0 (A) Uncollectible accounts charged against allowance. (B) Actual warranty claims and start-up costs charged against reserve. (C) Addition due to acquisition. (D) Company determined that the reserve was no longer required.